TORONTO, May 30, 2024 /CNW/ - STEER Technologies Inc. ("STEER" or the "Company") (TSXV: STER), (OTCQX: STEEF), an integrated ESG technology platform, today announced and filed its interim financial statements for the quarter ended March 31, 2024 ("Q1 2024"). All financial results are reported in Canadian dollars unless otherwise stated.1 Quarterly results include revenue of $511,100 in Q1 2024, with a gross margin of 52%. G&A and operational expenses were impacted by one-time costs in Q1, including legal fees to close the round of financing and other non-recurring fees associated with restructuring and dissolving previous entities, most of which have been completed. As a result, the company does not anticipate these costs going forward.
"As we mark the end of Facedrive and its subsequent rebrand to STEER, we feel confident that the Company's strategic restructuring will set the stage for significant shareholder value creation in the vehicle in the months to come," said Junaid Razvi, CEO and Chairman of STEER. "Further to our May 23rd announcement, we will focus on our sole remaining operating business of contract last-mile delivery."
After the 2023 spin-off of its legacy B2B Marketplace business, FoodsUp Inc. ("FoodsUp"), associated revenue is no longer consolidated within STEER. However, the Company retains a 58.72% indirect equity interest in FoodsUp on its balance sheet. Further to previous public disclosure, the Company remains committed to implementing a divestment of most of its FoodsUp equity interest, the effect of which, if it occurs, will be to provide shareholders with direct ownership in FoodsUp.
The Company continues to seek buyers and is in active sales conversations about its equity interest in Westbrook Inc. and the technical intellectual property related to its previous rideshare, food delivery, STEER EV, and EcoCRED solutions. Facedrive Food Inc. and Facedrive Health Inc. entities have been successfully dissolved. Filings have been submitted to the applicable regulatory authorities to dissolve Facedrive USA LLC.
For detailed information, please refer to STEER's Q1 2024 Interim Consolidated Financial Statements and its Management Discussion and Analysis of Financial Condition and Results of Operations for the three months ended March 31, 2024 and 2023, filed on SEDAR+ at www.sedarplus.ca. The following table provides a summary of the Company's financial results for the three months ended March 31, 2024 and 2023:
For the three months ended March 31 | 2024 | 2023 | ||||
REVENUE | 511,100 | 15,229,000 | ||||
Cost of revenue | 245,600 | 15,434,000 | ||||
General and administration | 983,000 | 1,409,200 | ||||
Operational support | 408,400 | 2,116,500 | ||||
Research and development | 49,200 | 278,800 | ||||
Sales and marketing | 72,400 | 551,100 | ||||
Amortization | 34,700 | 196,900 | ||||
Depreciation | 8,500 | 458,900 | ||||
Total operating expenses | 1,801,800 | 20,445,400 | ||||
OPERATING LOSS | (1,290,800) | (5,216,400) | ||||
OTHER INCOME (EXPENSES) | ||||||
Foreign exchange gain (loss) | (100,600) | (31,600) | ||||
Interest expenses | (434,100) | (444,000) | ||||
Interest income | 1,000 | 4,500 | ||||
Loss from sale of equipment | - | (24,800) | ||||
Gain (loss) on lease termination | 1,341,800 | 96,600 | ||||
Account payable settlement | 98,200 | - | ||||
Penalties and settlements | (59,000) | |||||
Fair value loss on preferred shares | - | (30,700) | ||||
Share of loss of an associate | (1,083,500) | - | ||||
Gain from Spin-off B2B Marketplace | - | 35,946,300 | ||||
PROFIT/(LOSS) BEFORE INCOME TAXES | (1,526,900) | 30,300,000 | ||||
Deferred income tax recovery | - | |||||
NET PROFIT | (1,526,900) | 30,300,000 | ||||
Cumulative translation adjustment | (174,000) | (24,000) | ||||
NET PROFIT AND COMPREHENSIVE PROFIT | (1,700,900) | 30,276,000 | ||||
NET (LOSS) PROFIT FROM OPERATION | (1,700,900) | 31,569,300 | ||||
NET LOSS FROM OPERATION | - | (1,293,200) | ||||
(Loss) profit per share – Basic and diluted | (0.01) | 0.24 | ||||
Weighted average shares outstanding - Basic and diluted | 132,944,615 | 123,902,400 | ||||
STEER is an integrated ESG technology platform that facilitates sustainable delivery services. The Company aims to build a one-of-a-kind ecosystem that aggregates conscientious users and businesses through a series of connected offerings. The Company's platform is powered by an analytics engine which seeks to analyze and report on critical data points in ways that measure the Company's impact on carbon reductions and offsets.
For more information about the Company, visit www.steeresg.com.
Junaid Razvi, CEO
This email address is being protected from spambots. You need JavaScript enabled to view it.
1-289-452-0164
STEER
44 East Beaver Creek Road, Unit 16
Richmond Hill, Ontario, L4B 1G8
Certain information in this press release contains forward-looking information, including with respect to the Company's business, operations and condition, management's objectives, strategies, beliefs and intentions, their anticipated impact on shareholders of the Company, and the Company's forward plans to rebrand. This information is based on management's reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this press release. Actual results and the timing of events, such as those pertaining to success of the Company's financial performance going forward from the above Q1 2024 results, may differ materially from those anticipated in the forward-looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements.
See "Forward-Looking Information" and "Risk Factors" in the Company's Annual Management Discussion & Analysis (MD&A) for the year ended December 31, 2023 (filed on SEDAR+ on May 8, 2024) and its interim MD&A for the periods ended June 30, 2023, September 30,2023 and March 31, 2024 for a discussion of the uncertainties, risks and assumptions associated with these statements and other risks. Readers are urged to consider the uncertainties, risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation and regulatory requirements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
____________________ |
1 All figures are accurate to the hundreds. |
| Last Trade: | US$0.26 |
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| Market Cap: | US$34.540M |
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